Dr Titus Okunronmu, former Director of Research Department, Central Bank of Nigeria (CBN), has predicted an increase in the lending rate from its current 24.75 by the Monetary Policy Committee (MPC) of Central Bank of Nigeria (CBN).
Okunronmu gave the prediction in an interview with the News Agency of Nigeria (NAN) on Monday in Ota, Ogun.
NAN reports that financial expert spoke against the backdrop of the MPC meeting scheduled for Monday and Tuesday.
He stated that the lending rate would be raised by MPC, as CBN might not want to force it down, adding that until the inflation rate came down, the lending rate would continue to go up.
“It is at the same level of inflation that CBN will net or fix the lending rate,” he said.
According to the former CBN director, the higher the inflation rate, the less profit commercial banks will record. (NAN)
